CNET’s Brooke Crothers has heard some information about the iPad 3’s upcoming 264PPI display. As we’ve heard a lot in the past, it will be a 2048×1536 resolution display as long as the Korean display manufacturers, Samsung and LG, can produce them in large numbers. According to his source, there could be some problems building it in the monstrous quantities that Apple demands.

The closest that iPad display manufacturers like LG Display and Samsung can get is 2048×1536 resolution display, according to the source. That’s a PPI of 264, twice the 132 PPI on the iPad 2.

But whether manufacturers can make them in volumes that Apple demands is the question. “They have production plans for 2,048×1,536 displays. Starting in November. But those are only plans at this point,” said the source, referring to LG and Samsung.

“It’s not a question of making just one. That, of course, can be done. The challenge is making lots of them,” the source said. “This is a quantum leap in pixel density. This hasn’t been done before.”

If manufacturers are not able to hit the volumes necessary for the higher resolution, there is an interim option of 1,600×1,200, according to the source.

The display is also expected to have a brightness of 550 nits. That’s pretty bright, as the typical laptop display panel tops out at about 350 nits.

I don’t think it is as easy as dropping the resolution down to 1600×1200. Apps don’t scale that easily even if the aspect ratio is the same. If for some reason, they can’t pump out the 2048×1536 in sufficient numbers (and Samsung is already testing better ones), Apple will continue with the same resolution….or wait until they can produce enough high resolution displays.